Amidst encouraging retail sales figure, exhibiting a surprise 1.1 percent growth and improving non-farm pay-roll in the U.S., the yields on the U.S. treasury have eventually increased. The improving economic indicators have raised concerns over the sustainability of Fed’s ongoing monetary easing. Despite, the market starting to doubt over the Fed’s plan on easing program, the Fed and in-house officials don’t believe that the current economic recovery and improvements in economic indicators is sufficient for Fed to alter its easing program. They are looking for far better economic recovery, strongly supported by the economic indicators.

Market analysts and economists from around the world are expecting the stimulus regime to continue for the time being considering current high unemployment rate. Further, despite the US economy already heading towards the recovery path, the pace of recovery is not enough for the Fed to take any actions. As the desired economic results are far away from the horizon, the market will witness the continuation of quantitative easing.

In line with ongoing optimistic outlook of the U.S. economy, as the market participants have been expecting to witness the economy recovery in the months ahead, for at least 3 to 4 months from now, with the sought continued economic growth, as witnessed in the previous month, the Fed is likely to review its easing program, opine the analysts.

At this juncture, the strong economic data supporting the US recovery are mainly the housing data and hiring figures which have been on the optimistic end. Further, improvement in consumer spending and the optimistic market sentiments is also fostering the US economy towards a positive frontier.

Despite the mixed reactions coming out of the market concerning Fed’s stimulus regime, it is the economic events that shall be driving the Fed’s plans and policies concerning quantitative easing. If the rate of unemployment declines in the same way as it has been since last few months, obviously, keeping the rate of inflation within the desired range, the day is not too far away that the Fed shall proclaim the end of its last resort measure, quantitative easing-3.